According to Caixin, March 24 (Reporter Liang Xiangcai), Zijin Mining Group (601899.SH), known as the "King of Mergers and Acquisitions," has not been affected in its pace despite the high Nonferrous Metals prices over the past year. The company's chairman, Chen Jinghe, believes that there are still cost-effective projects under the backdrop of high Industry prices.

During the performance briefing held today for 2024, an Institutions asked about Zijin Mining Group's acquisition strategy, to which Chen Jinghe responded that he was very happy to answer this question.

Chen Jinghe stated that implementing acquisitions is the company's established strategy. Even under the backdrop of high prices in the Copper, Gold, and other Metal industries, there are still relatively cost-effective projects; the company will not buy "very expensive" symbols, nor will it pursue a specific goal at any cost.

He indicated that during acquisitions, if assessed based on the valuation model provided by the seller, the projects would indeed be relatively expensive, but the company also needs to consider factors like resource reserve growth potential and the potential for cost reductions after takeover, as well as whether there will be further improvement space in the future; he explained the company's acquisition strategy from four aspects.

Firstly, in terms of the types of mines, the company chooses varieties that align more closely with future societal development. For example, Copper plays an important role in the development of New energy and smart technologies. Given the current geopolitical conflicts and the global central banks' excessive monetary issuance, Gold prices continue to rise sharply. In the future, Gold will also be one of the key symbols for the company's investment and acquisitions.

Secondly, in terms of regional selection, the company adheres to its Global Strategy without wavering, taking into account impacts from geopolitical factors, and will comprehensively increase investment in countries surrounding China. In countries where there are issues with the investment environment, the symbols will certainly be cheaper, and in regions where conditions are better in various aspects, the symbols will certainly be more expensive, which requires the company to weigh various pros and cons internally.

Thirdly, regarding the selection of investment projects, there is now particular attention on mergers and acquisitions of operating projects, as these can quickly reflect in earnings after the acquisition.

Fourth, currently, overseas risks are increasing. Zijin Mining Group adheres to the concept of common development, executing the responsibility of promoting local economic development when developing any project, which can garner strong support from local governments, thereby enhancing the company's resilience to risks.

According to Statistics from reporters at the Financial Associated Press, since 2024, after repeated new highs in the prices of Nonferrous Metals represented by Copper and Gold, Zijin Mining Group has completed five large-scale mergers and acquisitions, with a total amount exceeding 24 billion yuan.

Zijin Mining Group's official website indicates that apart from its origins at the Zijinshan Gold-Copper Mine in Shanghang County, Fujian, the remaining 14 domestic mining Assets are all acquired through various forms of mergers and acquisitions. The company's overseas mining projects are spread across Central Asia, Europe, Africa, Oceania, and South America, totaling 19 Assets.

It is worth mentioning that at this performance briefing, Chen Jinghe candidly stated that the company's Market Cap management is 'not very good' at present. In the context of high growth, compared to Global copper companies, the company’s valuation performance is not as good as Southern Copper and Freeport-McMoRan.

Zheng Youcheng, Secretary of the Board of Directors of Zijin Mining Group, added that the company's PE (dynamic Price-to-Earnings ratio) is about 14 times, while the average PE level of companies globally engaged in Copper and Gold is above 20 times.

Data shows that in the past twelve months, Freeport-McMoRan and Southern Copper have dynamic PE ratios of approximately 31 times and 24 times, respectively.

In terms of performance, Zijin Mining Group achieved a record high in 2024, with revenue reaching 303.64 billion yuan, marking the first time it exceeded 300 billion, a year-on-year increase of 3.49%. The Net income attributable to shareholders was 32.051 billion yuan, representing a year-on-year increase of 51.76%.